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Telecom stocks are expected to trade in a narrow range next week with the Telecom Commission expected to meet Tuesday to decide on the contentious issue of spectrum usage charges. Telecom Commission, the highest decision making body in the telecom department, will have to decide on the spectrum usage charge that telecom companies will have to pay for the bandwidth acquired through the auction scheduled in February.
Telecom companies currently pay spectrum usage charge in the range of 2-8% on their adjusted gross revenue annually, depending on the amount of spectrum they hold, circles they operate in, among others. Incumbent telecom operators such as Bharti Airtel, Vodafone India and Idea Cellular that pay about 7-8% as spectrum usage charges have demanded that the fee be levied at flat 3% as recommended by the Telecom Regulatory Authority of India on Sep 9. If the usage fee is levied at 3% then it is seen positive for the incumbent operators.
Telecom stocks are expected to trade in a narrow range next week with the Telecom Commission expected to meet Tuesday to decide on the contentious issue of spectrum usage charges. Telecom Commission, the highest decision making body in the telecom department, will have to decide on the spectrum usage charge that telecom companies will have to pay for the bandwidth acquired through the auction scheduled in February.
Telecom companies currently pay spectrum usage charge in the range of 2-8% on their adjusted gross revenue annually, depending on the amount of spectrum they hold, circles they operate in, among others. Incumbent telecom operators such as Bharti Airtel, Vodafone India and Idea Cellular that pay about 7-8% as spectrum usage charges have demanded that the fee be levied at flat 3% as recommended by the Telecom Regulatory Authority of India on Sep 9. If the usage fee is levied at 3% then it is seen positive for the incumbent operators.
